Both the Associated Press and Reuters are now reporting that the Playstation 3 20 GB will be getting a 20 percent price drop in Japan. That means the lower end PS3 will sell for 49.980 yen or $429 there. No mention of the price for the higher-end PS3 was made likely because in Japan that price is being left to retailers to set.

Ken Kutaragi did not say whether that price cut will be coming to the U.S. as well.

HONG KONG (MarketWatch) — Sony plans to reduce the price of its soon-to-be-released PlayStation 3 game console, the head of its game division reportedly said Friday. Ken Kutaragi, president of Sony Computer Entertainment, said at the Tokyo Game Show that the console's less expensive version would now sell for 49,980 yen ($429), according to media reports. Kutaragi attributed the price cut to customer complaints that the console was too expensive. The PS3 is scheduled to be released on Nov. 11

I've been told a press release is coming out tonight, hopefully it will have more official word. Sony has confirmed to me that HDMI out will now be present in both versions of the PS3 worldwide.

I've added the press release that Sony just sent out. It doesn't add anything new. I've also emailed to ask if there is any comment on the U.S. price, but I don't expect to hear anything until tomorrow at the earliest. Brian Crecente

Tokyo, September 22, 2006 - Sony Computer Entertainment Inc. (SCEI) today announced that PLAYSTATION 3 (PS3) with 20GB hard disk drive (HDD) will come equipped with HDMI(*) (Ver 1.3/supporting Deep Color) output as standard with the system. PS3 with 20GB HDD will become available in Japan at a new recommended retail price of 49,980 yen (tax included).
Since SCEI first announced product specifications of PS3 at the Electronic Entertainment Expo (E3) in May 2005, demand for enjoying full HD quality image and realistic digital sound through HDMI has grown tremendously. Given the sharp increase in availability of flat displays supporting HDMI in the market, SCEI has decided to equip HDMI as standard on all PS3 systems.
SCEI, with strong support from software developers and publishers, will offer a broad lineup of exciting and innovative titles and vigorously promote the PS3 platform.